A text messaging service allowed scammers to send messages impersonating well-known companies, the communications watchdog says.
An investigation by the Australian Communications and Media Authority found Burst SMS, which allows businesses to send bulk text messages, had breached anti-scam rules.
The company had offered clients a free trial to send 10 messages per day, without carrying out verification checks first.
The watchdog found scammers had sent 108 scam text messages in one month while impersonating reputable companies such as banks, telcos and rideshare services.
Under the current code, telcos need to obtain evidence from clients they have a legitimate reason to use text-based sender IDs when text messages are sent out.
The authority's chair Nerida O'Loughlin said customers needed to be cautious if they receive text messages with links.
"Scammers will take advantage of any small crack in the system, and on this occasion they took the opportunity opened up by Burst's free trial offer," she said.
"Every text that contains a link should be treated with caution until you are sure it is legitimate. If there is any doubt then the best course of action is to report and delete the message."
While Burst SMS has not been fined for breaking the anti-scam code, the company could face stronger penalties if further breaches are detected.
As part of the code, telecommunication companies are required to identify, trace and block suspected SMS scams.
Since the measures were enacted in July last year, more than 257 million scam texts have been blocked by telcos.
A much loved premium chocolate brand is recalling three of its popular products over fears it could make customers sick.
Australian tourists are missing after their boat disappeared off the Indonesian coast where local authorities have begun a search and rescue operation.
The Victorian government will introduce long-awaited reforms to make it easier for low-level offenders to get bail and cut down on people on remand.
Neymar is set to complete a move to the Saudi Pro League, Al Hilal having agreed to pay Paris SG $A150m and the player an annual salary of $A154m for two years.
A former English teacher's alleged child abuse of four of his students across two decades was exposed after a mother stumbled across her daughter's diary.
A new policy which could help Australian businesses compete against countries with weaker emissions settings has been flagged by the climate change minister.
An Aboriginal woman who died at her partner's hand was removed from a domestic violence support framework months before her death, an inquest has been told.
Workers at a critical government agency are set to stop work on Tuesday as a dispute over pay and conditions continues to intensify.
Tractors and trucks have descended on the Victorian parliament as farmers protested plans to run high-voltage transmission lines and towers through their land.
The 22-year-old was swimming with a group of friends at the popular surf beach when 'chaos' struck.
The downfall of a reality TV star has been laid bare in court as she admitted to driving while on drugs.
A passenger whose plane was forced to land mid-flight has revealed what kicked-off the hours-long stand-off.
The grieving family have shared a tribute for the 21-year-old who was found dead in a storm drain.
Senator Linda Reynolds claims she was set up as the “perfect villain” in the allegations against Bruce Lehrmann.
Mobile footage has captured the terrifying moment two masked men produced a deadly weapon while attempting to steal a teenager’s bicycle.
The victim has been named locally as Sara
A leading 'no' campaigner is under pressure to reveal more details about volunteers who were sacked for racist comments, one of which was "very anti-Semitic".
Confronting footage shows a man and woman, both in their 20s, suddenly go violently rigid after sitting on the tracks.
Katie Loxton was a serving prison custody officer at HMP Oakwood
The partner of an alleged Alameddine associate has made a legal play while her boyfriend remains on the run from police.

source